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Barrie Home Equity Loans
What are home equity loans or lines of credit?Before getting into what Barrie Home Equity Loans are, lets separate the myth of what home equity is and what it is not. Home Equity Loans are NOT a second mortgage loan, there is a huge difference between these two loan products! For starters, home owners can only borrow up to 80% of their home equity value, whereas second mortgage loans are far more substantial in monetary amount. A second mortgage loan is designed to use the home as security, but the home owner must still QUALIFY for this second, large loan as the interest rate is higher on a second mortgage and the risk factor to the lender is much higher. Now that is cleared up, Home Equity Loans is a loan designed in a way that it can be borrowed from the home owner IF there is grown equity in the home. The money difference between the current market value of the home and the amount of money still owing on the mortgage loan is how the monetary value of equity is derived. If the equity is built-up enough to be semi-substantial (which takes a few years of making that mortgage payment each month), then lenders will be more than happy to loan home owners money against their equity.
How do home equity loans work?Barrie Home Equity Loans lenders do not require the home owners to jump through mortgage standard hoops to obtain their loans, a short application process is all the home owners need, which will just clarify that there is enough income to cover the equity loan and a decent credit rating. There are no hidden closing costs and additional fees like second mortgage loans. Home Equity Loans even have a higher rate of approval then second mortgage loans! Leveraging the grown equity in your home is basically pulling back what you have already invested into your home. Sometimes this is a wise maneuver financially for home owners, and sometimes dialing their equity back to almost zero and starting all over again to build equity is not as appealing. It is best if home owners investigate Home Equity Loans further, to ensure this is the best method for them to gain access to easily sourced & useable funds.
When is taking out a home equity loan or line of credit makes sense?Home owners often come across scenarios that require additional funds, and when they hear terms like ‘equity rich’, their focus turns to any easily accessible equity that they personally have grown over a period of years. This option alone has a positive and personal gainful impact because there is far less restrictions and criteria to be met when borrowing on the equity established. Barrie Home Equity Loans is a more attractive means of borrowing money because it is like borrowing back the monies invested, so it is kind of like saying ‘I want the money back to what I have put in, or at least a good portion of it’. Whether the Home Equity Loans is for major home renovations, an extended holiday, purchasing a new vehicle, attending to furthering education or paying for a wedding or other life event, the built-up equity in your home can be the answer!
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